Dapto Property Market Update 1st Half 2023
In Q1 2023, Dapto recorded a median house price of $782,500, and a median unit price of $610,000. This represents annual (Q1 2022 – Q1 2023) median price softening of -3.8% for houses and -11.6% for units. That said, on a quarterly basis (Q4 2022 – Q1 2023) median house price grew by 0.3% and median unit price declined at a slower rate of -4.3%. Thus, cash rate hikes did translate into the market, but consumer confidence have returned. In the past 12 months sales declined by -2.6% (house), thus an undersupply is evident. For those looking for a more affordable market, time is of the essence.
Average vendor discounts between Q1 2022 and Q1 2023 have swung from a premium of 1.2% to a discount of -4.1% for houses. Units have shifted to a higher discount, of -3.9%. Market conditions favour buyers, as sellers are willing to accept below the first listing price. That said average vendor discounts have stabilised in the past quarter, thus time is of the essence for buyers.
House rental yields in Dapto were recorded at 3.6% in March 2023, above Sydney Metro (2.9%). Median house rental price remained stable in the 12 months to Q1 2023 (at $550 per week), however there was a 33.3% increase in the number houses rented, which suggest high demand. Average days on the market increased remained low at 22 days. Overall, this represents a resilient rental market Dapto, which has a more affordable investment entry price than Sydney Metro.
4+ bedroom houses have provided investors with +16.1% rental growth annually, with a median rent of $720 per week.
Dapto (Postcode 2530) recorded a vacancy rate of 0.6% in March 2023, which is below Sydney Metro’s 1.3% average; thus, properties are rented quicker in Dapto. Vacancy rates in Dapto have seen an increasing trend in the past 12 months, due to investors capitalising on a tight rental market. However, March 2023 vacancy rates are still below 1.0% and the Real Estate Institute of Australia’s healthy benchmark of 3.0%: thus, a conducive and sustainable environment for investors.
